In today’s competitive and data-driven business environment, trust is a currency that emerging technology companies cannot afford to overlook.
As organizations increasingly rely on third-party vendors and cloud-based services, demonstrating a commitment to data integrity and operational transparency becomes essential. A System and Organization Controls (SOC) report offers a powerful way to build that trust by providing independent validation of your internal controls and processes. Whether you’re a startup aiming to win enterprise clients or a scaling company navigating regulatory landscapes, understanding the value of a SOC report is key to unlocking growth and credibility.
What is a SOC report?
Your clients and prospects want assurance that their data and transactions are handled with integrity. A SOC report provides the transparency and trust needed to demonstrate your commitment to strong controls and processes. In a SOC report, auditors trained in IT, financial and operational controls evaluate your systems and process by inspecting evidence and documentation to verify controls are in place. The auditors produce a formal report that can be shared with clients, prospects, regulators and other interested parties about their procedures and results of testing.
How Can a SOC 2 Help a Startup?
Startups are often trying to sell services to larger organizations. These types of organizations often have Third Party Risk Management (TPRM) programs that work alongside their procurement functions and require them to perform due diligence of their own vendors, particularly if the vendor can access what the organization considers sensitive data. As part of the sales cycle an organization may ask you to provide a SOC report to demonstrate you have appropriate processes to protect their data. A SOC report completed by an independent third-party provides your customers and prospects assurance that you are doing the right things. It also provides your company with assurance that there are no gaps in the internal controls tested by the auditor.
How Do I Review a SOC Report Provided by a Vendor?
If you use a cloud hosting provider like AWS, Azure or GCP or other vendors to support key operations you will need to complete due diligence activities over the vendor to make sure they maintain an appropriate internal control environment to protect your data and ensure continuity of services. Typically, a SOC report is used to facilitate this process. SOC reports have a certain format that can ease the review process but require some background. If your company has your own SOC report, your auditors will ask for evidence of your review.
View our SOC Review Report Template
About Schneider Downs Emerging Technology Services
Schneider Downs understands the ever-changing landscape and business challenges facing companies focused on emerging technologies and software. Our clients represent a wide range of organizations, from emerging growth companies to large mature companies, and we are well-versed in the unique challenges they face. Our team of seasoned professionals has experience working with emerging technology companies in all phases of their evolution.
To learn more, visit our Emerging Technology page.
